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Brown set to focus on education Brown set to focus on education
(40 minutes later)
Gordon Brown will put spending on schools at the heart of his 10th and possibly final pre-Budget report.Gordon Brown will put spending on schools at the heart of his 10th and possibly final pre-Budget report.
The chancellor said better education was vital for the UK to meet challenges from countries such as China and India.The chancellor said better education was vital for the UK to meet challenges from countries such as China and India.
Higher fuel duty for motorists and air passengers are also expected as part of a package of "green" measures.Higher fuel duty for motorists and air passengers are also expected as part of a package of "green" measures.
The Tories said Mr Brown's boasts masked falling living standards, while the Lib Dems said his legacy would be government waste and personal debt. The Tories said 10 years of Labour pledges had not improved education. The Lib Dems said Mr Brown's legacy would be government waste and personal debt.
The chancellor, who is favourite to become the next prime minister, is expected to give an upbeat assessment of the economy, claiming it is performing better than most European competitors.The chancellor, who is favourite to become the next prime minister, is expected to give an upbeat assessment of the economy, claiming it is performing better than most European competitors.
But his pre-Budget report is being seen as more of a political manifesto for the leader-in-waiting.But his pre-Budget report is being seen as more of a political manifesto for the leader-in-waiting.
'Planet''Planet'
During a round of media interviews on Wednesday morning he said that education, in schools, colleges and the workplace, was vital to ensure that British workers were well placed for the future.During a round of media interviews on Wednesday morning he said that education, in schools, colleges and the workplace, was vital to ensure that British workers were well placed for the future.
He told BBC Radio 4's Today programme: "We have stability in the economy. The problem now is to prepare this economy and this country for the future.He told BBC Radio 4's Today programme: "We have stability in the economy. The problem now is to prepare this economy and this country for the future.
"You will not be able to do this unless you invest heavily in the education and training of young people, of children, young people and adults who are already in the work place.""You will not be able to do this unless you invest heavily in the education and training of young people, of children, young people and adults who are already in the work place."
The pre-Budget report will be Mr Brown's 10thThe pre-Budget report will be Mr Brown's 10th
Mr Brown is expected to say the economy looks on track to at least match - if not exceed - the Treasury's 2-2.5% prediction of economic growth for this year. Mr Brown is expected to say the economy looks on track to at least match - if not exceed - the Treasury's 2% to 2.5% prediction of economic growth for this year.
The chancellor may also revise up the economy's trend growth rate from 2.5% to 2.75% - a move which could reduce pressure for future interest rate rises.The chancellor may also revise up the economy's trend growth rate from 2.5% to 2.75% - a move which could reduce pressure for future interest rate rises.
Mr Brown, who is seen as wanting to reclaim the environment as an issue from Tory rival David Cameron, told the BBC there were a range of measures which could be taken to help improve air quality and to ensure a "healthier planet".Mr Brown, who is seen as wanting to reclaim the environment as an issue from Tory rival David Cameron, told the BBC there were a range of measures which could be taken to help improve air quality and to ensure a "healthier planet".
Speculation has focused on the possible taxes on "gas guzzling" 4x4 cars and for air travel, after the Stern review in October on climate change warned that action was necessary to combat global warming.Speculation has focused on the possible taxes on "gas guzzling" 4x4 cars and for air travel, after the Stern review in October on climate change warned that action was necessary to combat global warming.
But Mr Brown said he would not give precise details until he delivered the report to MPs in the House of Commons, which is expected to be at about 1240 GMT. Mr Brown could announce a carbon trading scheme for supermarkets, banks, universities, hotels, hospitals and government departments, the Guardian newspaper predicts.
'Wizard of Oz'
Under the scheme, firms would either reduce their own emissions or buy credits from other firms giving them the right to pollute more than their agreed limit.
Mr Brown said he would not give precise details of his report until he delivered it in the House of Commons, which is expected to be at about 1240 GMT.
Mr Brown was denounced by his Conservative shadow George Osborne as a "Wizard of Oz" chancellor, whose loud boasts of economic success masked actual failure.Mr Brown was denounced by his Conservative shadow George Osborne as a "Wizard of Oz" chancellor, whose loud boasts of economic success masked actual failure.
"It looks impressive but when you pull back the curtain there he is pulling levers that are not actually connected to the real world," he told BBC News 24.
Living standardsLiving standards
According to a dossier produced by Mr Osborne, Britain's performance on growth, unemployment, tax increases, budget deficits and productivity is actually lagging behind that of other industrialised nations.According to a dossier produced by Mr Osborne, Britain's performance on growth, unemployment, tax increases, budget deficits and productivity is actually lagging behind that of other industrialised nations.
Much of this year's apparently healthy growth in the economy can be accounted for by the contribution of immigrants from eastern Europe, who have depressed earnings in some sectors, said the shadow chancellor.Much of this year's apparently healthy growth in the economy can be accounted for by the contribution of immigrants from eastern Europe, who have depressed earnings in some sectors, said the shadow chancellor.
There has been no "feelgood factor" because inflation has been rising faster than wages, driving real living standards for the majority down.There has been no "feelgood factor" because inflation has been rising faster than wages, driving real living standards for the majority down.
Spending
He also attacked the chancellor's plans to boost education spending, saying it had been heard before.
"We have a situation in this country where one in every six children leaving our schools is unable to read and write properly," he told Today.
"That is after ten years of a government that was first elected on the pledge of education, education, education, and its number one priority. "
Liberal Democrat treasury spokesman Vince Cable said his party's research suggested wasteful government spending was now exceeding £30,000 a minute.Liberal Democrat treasury spokesman Vince Cable said his party's research suggested wasteful government spending was now exceeding £30,000 a minute.
"Gordon Brown's legacy may be to leave his successor with two enormous problems - personal debt and government waste," said Mr Cable."Gordon Brown's legacy may be to leave his successor with two enormous problems - personal debt and government waste," said Mr Cable.